JAMMU: Jammu Kashmir has been making efforts to regain control of key hydropower projects operated by NHPC, citing recommendations from various committees and agreements that outline the potential return of these projects to the Union Territory. The government has been actively seeking the transfer of projects such as Salal, Uri-I, Dulhasti, and others, which were allocated to NHPC under different agreements over the years. Despite multiple attempts, NHPC has not responded positively to these requests, leading the Jammu and Kashmir administration to explore other avenues to reclaim its hydropower resources.
The issue of ownership and control of hydropower projects has been a long-standing concern for Jammu and Kashmir. The MoU signed on July 20, 2000, allowed NHPC to fund, execute, and operate certain hydropower projects while retaining ownership with the state. However, the agreement also included a provision for transferring these projects back to Jammu and Kashmir. The government has been pushing for this transfer, especially for the Dulhasti, Uri-I, and Salal projects.
A key recommendation for the return of these projects came from the Rangarajan Committee in November 2006, which suggested transferring the Dulhasti Hydroelectric Project to the Jammu and Kashmir government. However, NHPC declined this recommendation. In 2011, the Jammu and Kashmir government constituted a Cabinet Sub-Committee to examine the terms under which hydroelectric projects were entrusted to NHPC. The committee submitted its report, which included recommendations such as:
Salal Hydroelectric Project: The state should seek a commitment for 47 per cent of the power generated and push for compensation for losses incurred due to reduced allocations. The government should also pursue the return of ownership of the project at its depreciated cost.
Uri-I Hydroelectric Project: The state should exercise its option to buy back the project at its depreciated value.
Uri-II Hydroelectric Project: The second stage of the Uri project should be undertaken by the state after ownership transfer.
Dulhasti Hydroelectric Project: The state should negotiate for its transfer and seek an increase in the free power quota from central projects.
Dulhasti Stage-II: Its execution should be contingent upon the successful transfer of ownership of the 390 MW Dulhasti Stage-I project to the state.
Despite these recommendations, NHPC did not act on them. The Jammu and Kashmir State Power Development Corporation (JKSPDC) made multiple attempts to calculate the present cost of these projects, relying on available documents such as audited balance sheets and tariff orders from the Central Electricity Regulatory Commission (CERC). By 2016, independent consultants had estimated the present cost of Salal (690 MW), Uri-I (480 MW), Dulhasti (390 MW), Uri-II (280 MW), Sewa-II (120 MW), Nimo Bazgo (45 MW), and Chutak (44 MW) projects. However, further progress in reclaiming these projects was stalled due to NHPC’s lack of cooperation.
Meanwhile, Jammu and Kashmir continues to be heavily reliant on NHPC for its hydropower generation. Under a new MoU signed on January 3, 2021, NHPC was allocated the 1856 MW Sawalkote Hydroelectric Project, 258 MW Dulhasti Stage-II, and 240 MW Uri-I Stage-II on a Build-Own-Operate-Transfer (BOOT) basis for 40 years. These projects are in addition to previous allocations such as Kishanganga (330 MW), Bursar (1020 MW), and Pakal Dul (1000 MW), which were transferred to NHPC for development.
Under the 2021 MoU, the government of Jammu and Kashmir is entitled to receive 12 per cent free power from these projects, along with the first right of refusal to purchase 50 per cent of the power generated. Additionally, 1 per cent of revenue is earmarked for Local Area Development Fund (LADF). The agreement also states that NHPC will hand back the projects after 40 years of operation, free of encumbrances.
The government has been exploring ways to ensure the return of these projects when financially viable. The 2021 MoU provides a potential roadmap for reclaiming them in the future, with a clear timeline for their return. However, past experiences indicate that securing their transfer will require persistent negotiations and financial planning.
For now, Jammu and Kashmir remains dependent on NHPC for its hydropower generation, but its efforts to reclaim key projects continue. The government has reiterated its commitment to regaining ownership of the region’s hydroelectric assets, ensuring greater control over its energy resources and revenue generation.
